How low can the price of disney shares fall before you

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Reference no: EM132048389

You've borrowed $14,000 on margin to buy shares in Disney, which is now selling at $56 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the stock price falls to $51 per share.

a. Will you receive a margin call? Yes or No

b. How low can the price of Disney shares fall before you receive a margin call? (Round your answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)

Margin call will be made at price $_____________ or lower

Reference no: EM132048389

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